Early in the year, the cryptocurrency market took a hit, with many fearing for the worse following the slump, but things are beginning to shape the industry, which signals a ray of hope for investors and fans alike.
Analysts from the financial and data company, Bloomberg, have given their expert opinion on the possibility of the crypto industry’s coming out of its market decline by naming the two cryptocurrencies they think will lead the pack, Bitcoin and Ethereum. Analysts believe both triggered the bullish move in the market. The prediction is based on how the tokens seem to keep up with any market forces and their manner of recovery after any major price slump in the market.
Bloomberg further indicates why it thinks Ethereum, Bitcoin, and Stablecoins are more promising than others in its analysis in the February report. And although all digital coins, including the ones mentioned earlier, have experienced bearish price movement, Bloomberg remains adamant that not only will those tokens bounce back, they will merge as one to become a global digital currency.
What To Expect
In explaining the factors it thinks will drive the predicted bullish trend of Bitcoin, Bloomberg mentions the position of Bitcoin as the pioneer digital token and, most importantly, its limited circulation. These factors are why Bitcoin continues to move up time and time again. The increasing number of new and emerging cryptocurrencies is no match for Bitcoin because it is not prone to speculation, and investors trust it more than others when it comes to adoption.
Bitcoin’s counterpart, Ethereum, is also a big player in the industry and should not be overlooked. Ethereum’s advantage is that its blockchain network creates the most stablecoins. And as opined by Bloomberg, stablecoins are increasing in demand, leading to an added benefit to the price of ETH in the market. The addition of another cryptocurrency to the market results in the reliability of the value of Ethereum.
The market will continue to eliminate any hindrance to its performance and reliability to the extent that even the so-called big players in the industry may not survive the ax when push comes to shove.
Many hitherto market players no longer exist in the mainstream, partly because of the volatility of the market and the brutal nature of the cryptocurrency industry that shakes off any undesired and weak parts of its members.
Moreover, some coins exist that rise and fall like waves but still manage to become essential players in the industry. Such adaptation is necessary to survive in the ever-changing blockchain network. New ways of doing things keep emerging, and old systems are upgraded to keep up with the changing ecosystem.
However, Bloomberg is optimistic that the dominance of the mentioned coins and its impact on the market dynamics make them such intimidating players in the industry. The upcoming bullish moves will further strengthen their reign at the right time.